Leave it alone is the basic rule here! Don’t use your cashback reward credit card to withdraw cash. There are several good reasons not to do this and i’ll explain, but the main one is that there is no real gain to be made out of earning points for this sort of thing simply because you’re not spending on your credit card, and that’s the only way you earn points!…
When you withdraw cash you’re not spending money so you will not be rewarded with any points whatsoever. You need to remember this because it’s surprising how many people don’t even consider it. Why would the credit card company do this? Everyone would take out their balance from a cash machine to earn the points and then put it back on the credit card the very next day for goodness sake! The credit cards are not stupid.
In general i would personally make it a rule never to take cash from a machine with any credit card, never mind the cashback one. They often charge you a lot of money in transaction fees and it’s rarely worth the trouble to be honest. A few transactions like this can soon leave you in a lot of trouble with your credit card company and too many times have things like this led to an account becoming default. It’s just not worth the trouble of withdrawing cash; try and buy what you wanted with the cash using your credit card and you won’t be penalised!
Tags: cashback credit cards, interest